For the purposes of OAR chapter 330,
division 170 the definitions in ORS 315.141 apply and in addition the following
definitions shall apply:

(1) “Applicant”
means an individual or a legal entity (including but not limited to any domestic
or foreign corporation, trust, partnership, cooperative, or limited liability company),
but does not include a nonprofit organization or a government entity, applying for
the tax credit under ORS 315.141 and 469B.403.

(2) “Certificate”
means a document issued by the department representing the right to claim a tax
credit described in ORS 315.141 for the amount described on the certificate.

(3) “Charcoal”
means biomass produced into a densified, carbon rich product used in filters, as
an absorbent, soil amendment, or a fuel marketed for cooking purposes and not including
biofuels produced by torrefaction.

(16) “Wastewater Biosolids”
means solids derived from primary, secondary, or advanced treatment of domestic
wastewater which have been treated through one or more controlled processes that
significantly reduce pathogens and reduce volatile solids or chemically stabilize
solids to the extent that they do not attract vectors. This term refers to domestic
wastewater treatment facility solids that have undergone adequate treatment to permit
their land application. This term has the same meaning as the term "sludge" in ORS
468B.095.

(1) The biomass must be eligible under
these rules, fall within the definitions in ORS 315.141 and have a credit rate listed
in ORS 469B.403.

(2) The biomass must be converted
into biofuel in Oregon or used as biofuel in Oregon.

(3) Waste grease that is
not dewatered prior to delivery to a biofuel producer is considered to have an eligible
biomass content of 10 percent of the delivered weight of the oil and water mixture,
unless the applicant can demonstrate, to the satisfaction of the department, an
alternative measurement.

(4) Forest or rangeland woody
debris must be collected and produced at the harvesting or thinning site.

(5) Only one certified credit
may be issued for each unit of biomass as defined in ORS 469B.403.

(1) Applicants requesting a Biomass
Producer or Collector Tax Credit must apply on the department approved form. The
form must include the following information:

(a) The name of the applicant,
address, phone number and email;

(b) The applicant’s
federal tax identification number or social security number, which may be shared
with the Oregon Department of Revenue to facilitate the administration of state
tax law;

(c) A description of the
quantity and type of biomass produced or collected;

(d) The name of the biofuel
producer that received the biomass for use as biofuel or to produce biofuel;

(e) The applicant’s
certification statement; and

(f) The name, address, email
address and telephone number of the responsible party for the applicant.

(2) In addition to the information
on the form, the applicant must provide all of the following information related
to the amount of biomass claimed in the application:

(a) Evidence that the agricultural
producer or biomass collector held title to the biomass at the time the biomass
was delivered. Evidence of title that may be satisfactory to the department, includes,
but is not limited to: contracts, receipts, settlement sheets.

(b) Documentation indicating
the origination of the biomass, such as the physical address; township, range, section
and quarter/quarter section; or other specific geographic indicator.

(c) A summary or settlement
sheet for each shipment received by the biofuel producer. Each summary or settlement
sheet must include the following:

(A) The name and address
of the biofuel producer to which the biomass was delivered;

(B) The date of delivery
for each shipment of biomass;

(C) The type of biomass included
in each shipment and the applicable tax credit rate for each shipment;

(D) The amount of biomass
delivered in each shipment;

(E) The delivered price for
each shipment of biomass, including the dry ton payment rate if applicable;

(F) The weight ticket number
or a similar unique identifier for each shipment; and

(G) For woody biomass and
vegetative biomass from agricultural crops, the dry ton weight equivalent of the
actual tonnage in each shipment, calculated in a manner acceptable to the department.

(d) A receipt of qualifying
biomass that includes the type of biomass, name and address of biomass producer
or collector, name and address of the person receiving the biomass from the applicant,
type of biofuel facility, dates delivered, amount of biomass received and a statement
attesting to the receipt and use of biomass. An applicant may complete the department
approved Receipt of Qualifying Biomass form or provide a receipt satisfactory to
the department.

(e) All calculations used
to convert one measure of the biomass to another measure and source references for
the calculations and all variables.

(f) An application fee of
$100 plus 2.5 percent of the total amount of tax credit.

(g) If eligible biomass is
stored or aggregated with other biomass or materials after the initial production
or collection activities and prior to delivery to a biofuel producer, the biomass
producer or collector must provide detailed records certifying the amount and source
of each type of biomass.

(h) Agricultural producers
or biomass collectors that produce or collect animal manure must use the department
approved worksheet or the following formula to calculate the amount of eligible
manure:

(A) A x b x c / 2000; where:

(i) A is equal to the number
of 1,000 pound animal units contributing manure during the period,

(ii) B is equal to the average
animal manure production value from the Natural Resources Conservation Service Agricultural
Waste Management Field Handbook Revision 2, March 2008, and

(iii) C is equal to the number
of days in the period.

(B) The following documentation
must be included with the application:

(i) When it is not practicable
to produce weight tickets for deliveries to a biofuel producer, agricultural producers
that produce oil seed crops, grain crops, grass, wheat, straw or other vegetative
biomass must include the following records with their application:

(A) Documentation demonstrating
the quantity of biomass produced, which must include one or more of the following:

(i) Acreage report(s) or
yield data submitted to the United States Department of Agriculture;

(B) Receipts or equivalent
documentation indicating the biomass was used or is to be used as biofuel in Oregon,
or to produce biofuel.

(j) If the applicant is transferring
biomass that cannot be weighed or calculated, the applicant must supply documentation
indicating the amount of biomass as measured by metering equipment or a similar
device.

(A) Applicants must provide
documentation, including manufacturer’s specifications that indicate the measurements
are accurate and reliable.

(B) Metering equipment or
similar devices must be calibrated according to the manufacturer’s specifications
and the calibration records must be maintained for a period of no less than five
years.

(3) The department may require
the applicant to provide further information to complete a review of the application
and verify compliance with statute and these rules. This information may include,
but is not limited to, demonstration that the biomass is used as biofuel in an eligible
manner. The department will notify the applicant in writing requesting additional
information. If the department does not receive the requested information within
30 calendar days of the date of the notice, the department may deny the application.

(4) If a biomass collector
requests a tax credit in place of the agricultural producer that produced the biomass,
the application must include a signed statement from the agricultural producer that
they are aware the biomass collector will be applying for the credit and that the
agricultural producer will not apply for a tax credit for the same unit of biomass.

(5) Applications must be
received within 60 days following the end of the applicant’s tax year during
which the biomass is delivered to a biofuel producer. Applications received after
this date will be returned and any application fee will be fully refunded.

(6) The department may refund
up to 75 percent of the application fee if the application is withdrawn prior to
review by the department. Only refunds that are $100 or greater will be issued.

(7) The department may require
the applicant to pay reasonable costs, not to exceed actual costs, incurred in connection
with reviewing the application that exceed the original application fee and which
the Director determines are incurred solely in connection with processing the application.
The department shall advise the applicant of any additional costs the applicant
must pay before the department incurs the costs.

(1) If the department approves an application,
the Director will issue a Certificate to the applicant identifying the name of the
Certificate holder, the biomass, and the amount of the tax credit certified.

(a) The amount of tax credit
certified will be determined by multiplying the amount of eligible biomass delivered
to a biofuel producer by the applicable tax credit rate found in ORS 469B.403.

(b) Except for oil seed crops,
tax credit certificates will be issued for the tax year the biomass is delivered
to a biofuel producer for use in Oregon. Tax credit certificates for the production
of oil seed crops used to produce biofuel will be issued for the tax year in which
the oil seeds are delivered to an oil seed processor. The department will not certify
tax credits for agricultural producers that produce oil seeds until documentation
indicating the oil has been used in Oregon to produce biofuel is provided in accordance
with these rules.

(2) The department may adjust
the amount of tax credit certified from the applied amount if miscalculations, inconsistencies
or errors are found during the technical review.

(3) If multiple types of
eligible biomass are included in a load that is appropriately documented under these
rules, the department will apply the lowest credit rate associated with the biomass
in determining the amount of certified credit for the entire load of eligible biomass.

(4) The department may review
the biomass origination, production or collection activities, or the operating activities
of the biofuel producer. The information gathered during a review may be used to
determine if the application complies with applicable statutory provisions and rules.

(5) If the department does
not approve an application, the Director will provide written notice of denial,
including a statement of the findings and reasons for the denial, by mail. The department
may deny the application if:

(a) The application does
not comply with applicable statutory provisions and rules;

(b) The applicant does not
provide information requested by the department within 30 days from date of request;

(c) The application is for
biomass that is not eligible for the tax credit, or the department cannot determine
the amount of eligible biomass that is co-mingled or combined with biomass that
is not eligible; or

(d) The department is unable
to determine whether the application complies with applicable statutory provisions
and rules based on the information provided by the applicant or gathered during
the review process.

(6) The applicant may request
reconsideration in writing no later than 60 days after the Director issues a decision
denying an application.

The official copy of an Oregon Administrative Rule is
contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
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